JANUARY 2024 | VOL.

32

THE
ORANGE
BOOK
Leverage your FINANCIAL QUOTIENT

Banking Made Easy With Digital Innovations

Digital Innovations Revolutionising
Banking
In the rapidly evolving landscape of banking, digital innovations are reshaping the
way we manage our finances, making transactions more convenient and
user-friendly than ever before.

Open for all

With an open-to-all philosophy,
banking apps like iMobile Pay allow
any Bank Account holder to
effortlessly utilise their services.
This inclusivity enhances
accessibility and simplifies customer
experience across diverse financial
institutions.
DOWNLOAD ICICI BANK’S IMOBILE PAY APP NOW

Credit on UPI
The integration of UPI with RuPay Credit Cards
extends the credit period for customers apart
from offering Reward Points for purchases. This
innovation allows money to be kept in Accounts,
increasing interest earnings.

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 PIN-Free UPI transactions
Bid goodbye to the hassle of using PIN for
small UPI transactions. UPI Lite’s
ground-breaking approach eliminates the need
for PIN authentication in these instances,
making transactions more user-friendly and
faster.

Everything in one place

Features like iFinance within iMobile Pay
bring all Accounts to one convenient
location. This feature provides users with
a comprehensive overview of their
financial data, simplifying the process of
managing multiple Accounts.

EXPLORE IFINANCE WITH IMOBILE PAY NOW

Biometric authentication
Gone is the era of PINs and Passwords. Many
banking and payment apps offer biometric
authentication, allowing users to log into their
Accounts with the touch of a finger or a glance,
prioritising convenience and security.

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 Cash in digital form
Embracing the era of digital currency, Digital Rupee
now seamlessly transitions from physical cash to a
digital equivalent, adding a new dimension to the
cashless economy. It is convenient to use and helps
avoid torn notes.
DOWNLOAD ICICI BANK’S DIGITAL RUPEE APP NOW

READ MORE ON DIGITAL RUPEE

Unified tracking of Mutual Funds*

iMobile Pay revolutionises Mutual Fund
management by letting customers import and
centralise data from multiple platforms. This
feature ensures easy access and efficient tracking
of all Mutual Fund investments in one place.
MANAGE YOUR MUTUAL FUNDS WITH IMOBILE PAY NOW

As we embrace these digital innovations, the

future of banking becomes not just convenient but
personalised, secure and tailored to individual
financial needs.

*ICICI Bank Limited is a AMFI Registered Mutual Fund Distributor. Mutual Fund investments are subject to market risk. Read all
scheme related documents carefully. T&Cs.

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Succession Planning: Creating a Trust
Introduction
Kumar runs a business and is interested in ensuring
that upon his death, all his assets are used for his
family’s benefit. He wants to make sure that this
distribution is done during his lifetime, minimising the
scope for any disputes among family members. He can
do this by creating a Private Trust.

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 What is a Trust?

The Indian Trusts Act, 1882 is a law governing Trusts. In the said situation, Kumar
creates a Private Trust. He gives away any/all of his assets to the appointed
trustee(s), who would now manage such assets for the benefit of his family. On the
other hand, a Public Trust is created when the assets are given for the benefit of the
public, as is the case with a charitable hospital.

Here, Kumar is the ‘Author’ of the Trust, which is created by a document called the
‘Trust Deed’. The property (cash, real estate, securities etc.) being settled in the
Trust is the ‘Trust-Property’. The person(s) whom Kumar appoints to manage the
Trust-Property are the ‘Trustees’. Kumar’s family members who are named in the
Trust Deed are the ‘Beneficiaries’ and their interest is known as the ‘Beneficial
Interest’.

Characteristics of Private Trusts

Kumar’s trust may have one or several of the following characteristics:
Discretionary- Kumar allows the
trustees to decide the share of benefits
each beneficiary would receive.

Determinate- Kumar fixes the share of

benefits of each beneficiary when
creating the Trust.

Revocable- Kumar has the power to

cancel the Trust at any time while he’s
alive.

Irrevocable- The Trust ends only when

its term is completed or the purpose is
fulfilled.

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 Uses of a Private Trust
As far as individuals and families are concerned, Private Trusts can help manage
their assets and plan succession. By settling his assets into a trust, Kumar can
protect them from liabilities or claims that may be made against him. Since Kumar is
the Author of the Trust, he gets to decide how the Trust-Property will be used.
The influence of his personal legal considerations in this matter is restricted.

Kumar can ensure his wishes are honoured by overseeing the transfer of assets to
the Trust and reviewing its management, while succession through a ‘Will’ can
leave scope for contestation and dispute.

From a long-term perspective, a Private Trust offers the option to include

potential future beneficiaries, e.g., children/grandchildren of existing beneficiaries.
It does help to have a structured and orderly succession, when families are present
in different geographies and hold different assets. A Trust structure helps a family
retain control over the assets as a whole, in a manner suited to their circumstances
and wishes.

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 How is a Trust set up?
Kumar may set up a trust by signing and registering a Trust Deed, which creates an
authentic and verifiable record of his intentions. The Trust Deed must clearly
specify the following:
(i) An unequivocal intention to create a trust;
(ii) Define the objectives of the trust;
(iii) Identity of the beneficiaries; and
(iv) Transfer of an identifiable property.

Kumar can also create the trust through a ‘Will’, which would be effective only upon
his death.

Things to keep in mind

If desired, Kumar can include a trusted
person as a ‘Protector’, to advise the
Trustees. The Protector will have the
power to overrule the Trustees on
certain decisions to ensure Kumar’s
wishes are carried out as intended.
Aside of being the ‘Author’, Kumar may
also be a Trustee; a Beneficiary; or all
three, when there are multiple
beneficiaries.

Apart from satisfying the essential criteria to create a trust, it is useful to provide
a clear delineation of authority and responsibilities when there are many trustees,
to avoid disputes.
Read more on the series:
SUCCESSION PLANNING: AN INTRODUCTION

NOMINEE VS LEGAL HEIRS: WHO INHERITS THE ASSETS?

SUCCESSION PLANNING: WRITING A WILL

The contents of this article are for informational purpose only and should not be considered as a recommendation or advice in any manner
whatsoever. Please obtain professional advice before making any decision.

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Health, Wealth and Passion
Timeless wisdom on the three pillars of a happy
and fulfilling life!

Give it time Build a lifestyle that echoes longevity

Be consistent Stay dedicated to a sustained sense of well-being

Handle volatility A healthy lifestyle is the key to tackling any health

concern that may come with age

Practice Patience Be patient; let exercise and good nutrition work their
magic

Get rewarded in Making health a priority early on, can pave the way for a
later years richer life

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Give it time Stay invested for a long time to avail compounding returns

Be consistent Consistent investments can lead to wealth accumulation

Handle volatility Staying committed to your investments can help avoid market
turbulence

Practice Patience Patiently invest small amounts regularly for substantial future
gains

Get rewarded in Benefits of long term investments get apparent only in later
later years years

Give it time Take time out for your passion, for a content and joyous life

Be consistent Consistency can help transform passion into mastery

Handle volatility Amid stress, engaging in our passion can ground the mind
and the heart

Practice Patience During challenging times, it takes patience to pursue our

passion without losing enthusiasm

Get rewarded in Having a particular passion and investing in it can become a

later years source of inspiration during our twilight years

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 Pick of the
Identity Fraud Month

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 READ MORE ON THE MODUS OPERANDI OF FRAUDSTERS

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Quiz
Q1) Financial planning allows a person:

A) To become a billionaire B) To achieve financial goals

through proper management
of finances
C) To invest in foreign D) To avoid paying taxes
countries

Q2) Which of the following investment products do not give

guarantee for return or capital?

A) RBI Bonds B) Public Provident Fund (PPF)

C) National Savings D) Units of a Mutual Fund

Certificates (NSC) Scheme

Q3) When the policyholder dies, the amount an insurance

company would pay to the nominee is known as the:

A) Premium B) Sum Assured

C) Face Value D) Surrender Value

Q4) Which of the following is most risky?

A) Investing in a Debt B) Investing in Sovereign

Mutual Fund Gold Bonds (SGB)

C) Short term investment D) Long term investment

in an Equity in an Equity

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 Q5) Which of the following is true for Equity Linked
Savings Scheme (ELSS)?

A) A tax rebate is available B) The investment has to

to investors in these be locked in for 3 years
schemes

C) Returns on ELSS D) All of the above

are taxable

Q6) Describe the purpose of nomination in case of life insurance policy?

A) To transfer the rights of B) To appoint a person to

the policy receive the benefit in case
of the policyholder's death

C) To surrender the policy D) To create an estate

Q7) Impact of inflation on your Investment Returns:

A) Inflation has no impact on B) Inflation has a positive

the Investment Returns impact on the investment
returns

C) Inflation has a corroding D) Inflation multiplies

impact on the Investment the investment value
Returns positively

Q8) Which of the loan obligations should be paid off first?

A) Car Loan B) Credit Card

C) Personal Loan D) Home Loan

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 Q9) What is considered as good CIBIL score?

A) 450 to 550 B) 550 to 650

C) 650 to 750 D) Above 750

Q10) For salaried individual, experts recommend to create an emergency funds

with enough money to cover living expenses for how many months:

A) 3 months B) 6 months

C) 12 months D) 24 months

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 Answers of the FinQ Quiz:
Q1 : B | Q2 : D | Q3 : B | Q4 : C | Q5 : D | Q6 : B
| Q7 : C | Q8 : B | Q9 : D | Q10 : B

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JANUARY 2024 | VOL. 32